Advances in next-generation pumped storage, compressed-air energy storage and advanced batteries have multiplied the technology options available for energy storage on the grid (ESG), while, at the same time, the applications for ESG are also increasing. Rapidly changing energy mixes and increasingly volatile load profiles will challenge grid operators to deliver reliable and secure electricity, encouraging demand for ESG over the next decade.

According to a recent report from Pike Research, a part of Navigant's Energy Practice, the market for ESG, starting from a very low base in 2012, will surpass $30 billion in annual value by 2022. The total capacity of ESG systems worldwide will reach almost 56,000 MW by 2022, the study concludes.

"One of the key challenges for energy storage will be to deliver cost-effective solutions for these grid-stability issues,” says research analyst Anissa Dehamna. “Market structures still must catch up with the market to acknowledge the value of energy storage to grid operators and power consumers. At the same time, the industry must solve issues around business models and the supply chain in order to successfully scale up and fully commercialize these emerging technologies.”

A key business model shift in the ESG market is increasing specialization, according to the report. Specifically, a significant number of recent strategic decisions and partnerships reflect a narrower market focus on the part of technology vendors. Instead of targeting many different markets and countries, more and more vendors are targeting their sales efforts on one or two markets or applications, and are repositioning themselves in the energy storage supply chain, the report adds.

Months after the U.S. Environmental Protection Agency released its Clean Power Plan, which will create new regulations for existing power plants, the agency says it has received loads of feedback to consider.